US healthcare bill dead, dollar hits 10-month low

Legislative failure adds to doubt surrounding Trump economic stimulus

The euro climbed above US$1.15, its highest level in more than a year, while the Chinese yuan hit an eight-month high as investors sold the dollar against a host of currencies on Tuesday, reports the Financial Times. The dollar index fell to 94.779, its weakest point since September.

The US currency’s drop came amid the collapse of a healthcare bill in congress after two more Republican Senators expressed their opposition. The effort to pass legislation that would rollback tax increases included in the Obama administration’s Affordable Care Act has been seen as an important starting point for the Trump administration’s economic stimulus plans.

Currency analyst at MUFG, Lee Hardman, was quoted as saying the bill failure was “a significant blow”, noting that the dollar “had already been left vulnerable by building expectations that the Fed will slow the pace of monetary tightening by potentially delaying the next rate hike until next year”.